By Jeslyn Lerh and Laura Sanicola<\/p>\n\n\n\n
SINGAPORE (Reuters) – Oil prices were little changed on Thursday, as a lower-than-expected drop in\u00a0U.S. crude\u00a0inventories and a potentially weaker demand outlook kept investors cautious.<\/p>\n\n\n\n
September Brent futures dipped 2 cents at $79.44 a barrel by 0530 GMT, while August U.S. West Texas Intermediate (WTI) crude rose 1 cent to $75.36 a barrel. The August WTI contract expires on Thursday.<\/p>\n\n\n\n
“Following some heavy selling pressure overnight, there is an attempt for oil prices to stabilise this morning,” said Yeap Jun Rong, market strategist at IG.<\/p>\n\n\n\n
Prices fell in the previous session as investors indulged in profit-taking after data showed U.S. inventories fell less than analysts expected.<\/p>\n\n\n\n
Meanwhile, the U.S. dollar was largely unchanged at 0530 GMT, edging down 0.2%.<\/p>\n\n\n\n
The outlook for demand China, the world’s biggest crude buyer, was also unclear amid a slowing economy.<\/p>\n\n\n\n
Crude prices may struggle to find a clear direction amid a mixed global demand outlook in the next few weeks, Citi analysts said in a note.<\/p>\n\n\n\n
Demand sees “a mixed picture with stronger gasoline and jet fuel demand, but weaker petchems and diesel,” the analysts said.<\/p>\n\n\n\n
Brent crude\u00a0prices have broken to a higher range through July, after getting stuck in a $72 to $78 range through May and June, the Citi analysts added, with support amid Saudi output cuts and geopolitical risks.<\/p>\n